As a WTO member, preparation for the implementation of the WTO Valuation Agreement is one of the prioritized tasks. This preparatory work should be carried out in parallel with the process of negotiations.
Cambodia was allowed a 5-year transition period for replacing the current valuation system with the WTO transaction value method in order to ensure the proper application of the Agreement and protect government revenue. Moving completely to transaction value at the time of joining the WTO would place budget revenue at grave risk. The challenges Cambodia faces in implementing the provisions of the Agreement include the low rate of voluntary compliance by importers, their lack of sound accounting systems and record keeping, and the limited capacity of the GDCE to administer transaction valuation provisions. Cambodia needs time to educate importers in the new valuation provisions and in the requirements for customs record keeping and accounting systems. Considerable time is also required to develop internal administrative procedures such as a post clearance audit program, information technology systems including a valuation reference data base, and to educate staff. The GDCE also needs to develop mutual cooperation and assistance agreements with Customs administrations of other countries to facilitate the exchange of valuation information.
As part of its WTO Valuation Agreement implementation plan the GDCE has been seeking technical assistance in elaborating further and implementing a transitional plan. The draft Customs law that was submitted to Parliament in October 2004 provides for the use of the WTO method. The new PSI contract would also comply with the Agreement. The Action Plan included a gradual phase-out as follows:
- By the end of 2004, imports of large multinational and local companies with well-established compliance records hence low-risk; similar imports of other firms; and imports by investment companies and other duty exempt entities, would be valued using the WTO system. These importers would be required to provide GDCE with information on the price actually paid, freight, insurance changes, and to agree to participate in Post-Clearance Audit program and maintain and make available company records.
- By the end of 2006, imports by selected low risk and other importers of low-value low-duty goods will be valued according to the WTO CVA.
- By the end of 2007, transaction values will be applied to the remaining imports of low-value goods with low duty rates.
- By the end of 2008, all imports including high-duty and sensitive goods will be subjected to transaction values so that the WTO CVA is fully implemented by 1 January 2009.
There would also be technical training and valuation technical manuals by the end of 2005, aside from the launching of a Post-Clearance Audit program and an automated Customs processing system.
Office Address:
6-8, Norodom Blvd, Phnom Penh, Cambodia
Telephone: +855 23 214 065
Fax Number: +855 23 214 065